Wall Street rises to more records as Tesla vrooms higher
[September 16, 2025] By
STAN CHOE
NEW YORK (AP) — Wall Street rose to more records on Monday at the start
of a week that could show whether the U.S. stock market’s big recent
rally has been overdone or prescient.
The S&P 500 climbed 0.5% and topped its prior all-time high, which was
set last week. The Dow Jones Industrial Average rose 49 points, or 0.1%,
and the Nasdaq composite added 0.9% to its own record.
Tesla helped lead the way and rose 3.6% after Elon Musk bought stock
worth roughly $1 billion through a trust. The electric vehicle company’s
stock price came into the day with a slight loss for the year so far,
and the purchase could be a signal of Musk’s faith in it.
Alphabet was the single strongest force lifting the S&P 500 after
gaining 4.5%, which brought the total value for Google’s parent company
above $3 trillion. Nvidia, Microsoft and Apple are the only other
companies on Wall Street worth that much.
The market’s main event for the week will arrive on Wednesday. That’s
when the Federal Reserve will announce its latest decision on interest
rates, and the unanimous expectation is for the first cut of the year.
Such a move could give a kickstart to the job market, which has been
slowing.
Stocks have already run to records on the assumption that a cut is
coming on Wednesday, though. Expectations are also high that the Fed
will keep lowering rates through the end of this year and into 2026.
That creates the possibility for disappointment in the market, which
would mean drops for stock prices, if the Fed doesn’t end up slashing
rates as aggressively as traders expect.
That’s why more attention will be on what Fed Chair Jerome Powell says
in his press conference following the decision than on the decision
itself. Fed officials will also release their latest projections for
where they see interest rates and the economy heading in upcoming years,
which could provide another potential flashpoint.
What’s keeping the Fed on guard is a possible jump in inflation because
of President Donald Trump’s tariffs. That’s because lower interest rates
can give inflation more fuel and send it even higher. And inflation has
already proven difficult to get under the Fed’s 2% target.
Another threat for Wall Street is if the job market slows too much. In
that case, a recession could create a downturn in corporate profits
that’s steep enough to swamp the benefits that lower interest rates
bring in the near term.
Trump, meanwhile, has pushed angrily for cuts to interest rates. He’s
often attacked Powell personally, nicknaming him “Too Late,” and is
trying to remove one of the Fed’s governors from its board.
“‘Too Late’ must cut interest rates now, and bigger than he had in
mind,” Trump wrote on his social media network Monday, using his
trademark all-caps style.
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Specialist John O'Hara works at his post on the floor of the New
York Stock Exchange, Monday, Sept. 15, 2025. (AP Photo/Richard Drew)
 On Wall Street, Intel rose 2.9%
after trimming its forecast for expenses this year. The move came
after it completed the sale of a 51% stake in its Altera business to
the Silver Lake investment firm.
That helped offset a 24.7% drop for Hain Celestial, which reported a
larger loss for its latest quarter than it did a year earlier.
Interim CEO Alison Lewis said the owner of “better-for-you” brands
like Terra chips is making moves to stabilize sales “as we recognize
our performance has not met expectations.”
Alaska Air Group lost 6.7% after the airline said high fuel costs
will likely cause its third-quarter results to come in at the low
end of its forecasted range. It also cited higher expenses for
overtime pay and passengers’ compensation after bad weather and
air-traffic control issues led to difficult operations in the
summer, though it saw strong airfare trends thanks to demand for
premium seats.
Nvidia edged down by less than 0.1% after China accused the chip
company of violating its antimonopoly laws. Chinese regulators did
not mention a punishment for Nvidia in a one-sentence statement on
the matter but did say they would carry out “further investigation.”
All told, the S&P 500 rose 30.99 points to 6,615.28. The Dow Jones
Industrial Average added 49.23 to 45,883.45, and the Nasdaq
composite climbed 207.65 to 22,348.75.
In the bond market Treasury yields eased, continuing their downward
run on expectations for cuts to rates by the Fed.
The latest discouraging data on the economy came Monday from a
report showing manufacturing activity in New York state is
shrinking, contrary to economists’ expectations for continued
growth. It’s the first month of contraction since June.
The next economic update will arrive Tuesday, when the U.S.
government will say how much shoppers spent at U.S. retailers last
month.
The yield on the 10-year Treasury fell to 4.03% from 4.06% late
Friday.
In stock markets abroad, France’s CAC 40 climbed 0.9%, while indexes
moved more modestly across the rest of Europe and Asia.
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AP Writers Yuri Kageyama, Matt Ott and Ken Moritsugu contributed.
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